Philex borrows $100M for Silangan project

MANILA  -Tycoon Manuel Pangilinan’s Philex Mining Corp. has tapped four banks for a $100-million debt facility that will be used to support the development of its Silangan copper-gold project in Surigao del Norte province.

In a stock exchange disclosure on Tuesday, Philex said it had signed an omnibus loan and security agreement with lenders Union Bank of the Philippines, Security Bank Corp. and Bank of the Philippine Islands, as well as BDO Capital and Investment Corp., the lead arranger for the debt facility.

Underground tunneling works for the project are currently at the 35-percent distance toward the ore body, which Philex aims to reach by the second half of 2024.

Clearing works and access road to the tailings storage facility area, meanwhile, are nearing completion, Philex said.

“Management is in the final stages of evaluating the proposals and is set to award the contract for the tailings storage facility,” it added.

The company raised P2.6 billion from its stock rights offer (SRO) last year to start the development of the project’s first phase, which covers the Boyongan ore deposit.

An SRO allows a company’s shareholders the right to buy additional shares or sell these rights to another investor. INQ